This paper provides empirical assessments of one of the leading explanations for the increase in skill premium in Mexico and Argentina during the 1990s: trade liberalisation. We present evidence showing that imports increase skill premium in Mexico, while exports reduce it. In Argentina, trade increased skill premium in the early 1990s (the beginning of trade reforms), although it reduced it later in the decade. These results are helpful for a comparison between South-South integration, FTAA or bilateral FTAs with Northern economies as alternative trade policy options for Latin American countries. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd.
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Article provided by Blackwell Publishing in its journal World Economy.
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Roberto Alvarez & Ricardo Lopez, 2008.
"Skill Upgrading and the Real Exchange Rate,"
Caepr Working Papers
2008-020, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
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